EUR/USD struggles to advance under key resistance
James Chen June 11, 2013 9:42 PM
<p>EUR/USD (daily chart) has struggled to continue its advance just under the key 1.3300 resistance, a level that has served as major support and resistance […]</p>
EUR/USD (daily chart) has struggled to continue its advance just under the key 1.3300 resistance, a level that has served as major support and resistance in the past, most recently just late last week. This pause below resistance comes after a substantial advance for the past two weeks that brought prices up from close to the 1.2800 support all the way up to the current highs near 1.3300 resistance. In the process of this climb, prices broke out above key prior resistance levels, including the 1.3000 figure (also around the 50-day moving average) and the 1.3150 level. The pair has also risen above the rough head-and-shoulders pattern of late April and early May.
Having now bumped up against and retested major 1.3300 resistance, EUR/USD is now at a critical juncture. A strong breakout above 1.3300 would clearly confirm a bullish trend continuation, with further upside resistance targets around 1.3500 and then 1.3700. If 1.3300 is respected as resistance with a turn back to the downside, the major intermediate support objective remains around the key 1.3000 level.
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.